Leann,
I just discovered a way to do this that isn't very complicated. Not sure it's going to help since you asked so long ago. Don't know if this will work for all, but it works for a Verizon Iphone 4 connected to a Windows7 PC.
Use a 3.5mm male to 3.5mm male between the Iphone headphone jack and the PC microphone jack. Open "Sound Recorder" at Start-All Programs-Accessories. Start recording on sound recorder about the same time you hit play on the Iphone and let it run. Save at the end.
A couple minor frustrations. It doesn't remember which directory to save to for subsequent recordings. I haven't figured out how to change volume in yet, it might be possible.
No need to purchase/dowload Audacity or other software, it actually worked real well.